• Most Popular
  • Most Shared

UPDATE 1-US group says factory Wal-Mart uses abuses workerS

Wed Feb 21, 2007 8:18pm EST

Stocks

   

(Adds Wal-Mart comments)

NEW YORK, Feb 21 (Reuters) - A U.S. watchdog group has called on Wal-Mart Stores Inc. (WMT.N) to put a stop to what it says is worker abuse at a factory in the Philippines that makes apparel for the retailer.

The Worker Rights Consortium said the Chong Won factory, which primarily makes clothing for Wal-Mart supplier One Step Up, has engaged in labor rights violations including forced overtime and minimum wage violations. The WRC has 167 U.S. college and university affiliates.

Wal-Mart has hired an independent firm to monitor the factory and would continue to investigate allegations of labor rights violations, the retailer said in a statement.

The company has audited the Chong Won factory four times in the last year, once unannounced, according to the statement.

The WRC has accused the factory's management of colluding with government agents in violence against striking workers and said it based its charges on an on-site investigation from Oct. 28 to Nov. 2. WRC said it notified Wal-Mart in November.

"Wal-Mart has the power to compel Chong Won to halt the violent assaults on lawfully striking workers, offer reinstatement to those workers who have been unlawfully dismissed, and recognize the union and begin bargaining," the WRC said in a report.

The WRC said Chong Won has produced casual apparel for a number of brands and retailers, including university licensees. But it said that since mid-2006, all of Chong Won's production has been for Wal-Mart.



More from Reuters

Photo

Obama reaches climate deal with emerging powers

COPENHAGEN (Reuters) - President Barack Obama forged a climate pact with major developing nations including China on Friday but European nations only reluctantly signed up for a deal they criticized as unambitious. | Video

A woman shops at a Sam's Club store, a division of Wal-Mart Stores, in Bentonville, Arkansas June 4, 2009. REUTERS/Jessica Rinaldi

The food-stamp economy

On the last day of every month, shoppers at Walmart load their carts with food and household items and wait for the midnight hour. Is this the new normal in America?  Full Article 

Two men shake hands in a file photo.    REUTERS/File

Let's make a deal

The battered M&A sector will make a tepid recovery in the coming year and three hot sectors will lead the way, according to a Thomson Reuters analysis.  Full Article